Cost-of-living crisis continues
R86.66: LOW-INCOME CONSUMERS STILL PAY MORE FOR MEALS
Price of food basket in Joburg increases by more than R13 in January.
Low-income consumers are still paying more for food, with the household food basket in the January 2024 Household Affordability Index costing R86.66 more than it did in December at R5 324.86 and R407.44 more than in January last year.
The household food basket survey is conducted for the Pietermaritzburg Economic Justice and Dignity Group by women who live in low-income communities where they shop for food at 47 supermarkets and 32 butcheries in Johannesburg, Durban, Cape Town, Pietermaritzburg, Mtubatuba in northern KwaZulu-Natal and Springbok in the Northern Cape.
While paying R86.66 more for the food basket does not sound like much for middleand higher-income consumers, for low-income consumers it means that they have to go without some of the core foods on their list, such as 5kg of samp at R63.14 or six loaves of brown bread at about R15 each. These items make a big difference for low-income families to keep hunger at bay.
Despite inflation decreasing in December to 5.1% and food inflation to 8.5%, while inflation softened for bread and cereals, oils and fats, sugar, sweets and desserts, vegetables and hot beverages, low-income consumers had to fork out more for various foods that cost more than it did in December.
Foods that cost more than 5% more in January compared to December are rice (5%), white sugar (5%), potatoes (13%), curry powder (6%), stock cubes (5%), soup (7%), beef (5%), tomatoes (14%), carrots (7%), spinach (6%) and green pepper (6%).
Other foods that cost 2% to 4.9% more are maize meal (4%), sugar beans (4%), samp (2%), salt (2%), frozen chicken portions (2%), chicken feet (3%), cabbage (2%), tinned pilchards (2%), bananas (4%), apples (3%), margarine (4%), peanut butter (3%) and polony (3%).
In January, the price of the food baskets increased in all areas tracked:
The Johannesburg basket cost R13.68 more than in December and R488.49 more than in January 2023.
The Durban basket cost R149.17 more than in December and R387.39 more than in January 2023.
The Cape Town basket cost R84.44 more than in December and R268.75 more than in January 2023.
The Pietermaritzburg basket cost R203.74 more than in December and R387.79 more than in January 2023.
The Mtubatuba basket cost R191.36 more in December and R255.76 more than in January 2023.
The Springbok basket cost R22.82 more than in December and R843.42 more than in January 2023.
Considering that low-income consumers who earn the national minimum wage of R25.42 an hour or R203.36 for an eight-hour day, it is clear that they are unable to afford all the food in the food basket for a family of four.
In January 2024, with 22 working days, the maximum national minimum wage for a general worker was R4 473.92. Dispersed in a worker’s family of four people, the wage is reduced to R1 118.48 per person, well below the upper-bound poverty line of R1 558 per person per month, while the January cost of a basic nutritional food basket for a family of four was R3 74.46. This means less nutritionally rich foods, which are essential for health and well-being and strong immune systems, in the basket.
Using Pietermaritzburg-based figures for electricity and transport, the group calculates that electricity and transport take up 59.6% of a worker’s wage (R2 666.92 of R4 473.92. They only buy food after paying for transport and electricity, leaving only R1 807.00 for food and everything else.
Therefore, the group calculates that workers’ families will underspend on food by a minimum of 51.7% with R1 807.00 left after transport and electricity and with food costing R3 741,46. In this scenario, it is impossible for a worker to afford enough nutritious food for her family.
If the entire R1 807.00 all went to buy food, there will be R451.75 per person per month, again far below the food poverty line of R760.
In January 2024, the average cost to feed a child a basic nutritious diet was R953.75, an increase of R14.02 compared to December and R100.72 more than a year ago. Compare this to the child support grant of R510 that is 33% below the food poverty line of R760 and 47% below the average cost to feed a child a basic nutritious diet and it becomes clear why so many children go hungry in South Africa.
In January, the women who do the survey also have to use the grant to buy shoes, uniforms and stationery for school children. They say in January, the grocery shops are almost empty, but the school clothing shops are full of mothers.
More women are part of stokvels who bulk-buy the core staple foods in December for staple foods in the house in January. The savings that go into the stokvels does not come from surplus money during the year, but by women cutting back on their own nutritional needs and other critical expenses.
However, not all women are able to save money into stokvels and the grant money all going to secure uniforms and shoes and stationery will mean that families will eat very poorly in January.